Journal of Business Ethics 112 (1):137-154 (2013)

Abstract
This empirical study examines corporate responses to activist shareholder groups filing social-policy shareholder resolutions. Using resource dependency theory as our conceptual framing, we identify some of the drivers of corporate responses to shareholder activists. This study departs from previous studies by including a fourth possible corporate response, engaging in dialogue. Dialogue, an alternative to shareholder resolutions filed by activists, is a process in which corporations and activist shareholder groups mutually agree to engage in ongoing negotiations to deal with social issues. Based on a unique dataset of resolutions filed by member organizations of the Interfaith Center on Corporate Responsibility from 2002 to 2005 and the outcomes of these resolutions, our analysis finds that corporate managers are more likely to engage in dialogue with shareholder activists when the firm is larger, is more responsive to stakeholders, the CEO is the board chair, and the firm has a relatively lower percentage of institutional investors.
Keywords Corporate governance  Corporate social responsibility  Dialogue  Shareholder activism  Shareholder resolutions  Social activism  Interfaith Center on Corporate Responsibility
Categories (categorize this paper)
ISBN(s)
DOI 10.1007/s10551-012-1237-2
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 72,564
Through your library

References found in this work BETA

A Brand New Brand of Corporate Social Performance.Tim Rowley & Shawn Berman - 2000 - Business and Society 39 (4):397-418.

View all 14 references / Add more references

Citations of this work BETA

View all 13 citations / Add more citations

Similar books and articles

Justice and Large Corporations.Jeanne Logsdon - 2008 - Business and Society 47 (4):523-548.
An Examination of Corporate and Regulatory Responses to Socially Oriented Investor Activism.Michael Hadani, Jonathan Doh & Marguerite Schneider - 2013 - Proceedings of the International Association for Business and Society 24:178-187.
An Examination of Corporate and Regulatory Responses to Socially Oriented Investor Activism.Michael Hadani, Jonathan Doh & Marguerite Schneider - 2013 - Proceedings of the International Association for Business and Society 24:178-187.
Shareholder Resolutions: A Closer Look at How Investor Activists Select Their Targets.Sara Morris & W. Trexler Proffitt Jr - 2010 - Proceedings of the International Association for Business and Society 21:189-201.
Changing the World Through Shareholder Activism?Joakim Sandberg - 2011 - Nordic Journal of Applied Ethics 5 (1):51-78.

Analytics

Added to PP index
2012-02-24

Total views
139 ( #86,371 of 2,533,482 )

Recent downloads (6 months)
1 ( #391,480 of 2,533,482 )

How can I increase my downloads?

Downloads

My notes